Best example I can give is

Best example I can give is this:  Watching a TV series.  Get to credits, hit stop.  The video will stop fine, it’ll appear to go back out the Netflix selection area.  The Netflix interface is non-responsive (more or less) for about 10-30 seconds before I can back out and select and play the next episode in the series.

I just got a PS3 in which doesn’t have this issue and made the flawed MCE’s interface more noticible.  Video itself is plays great and never has any lag on any system in my place, just the interface.

1)  I’ll disable “automatically detect settings” but I don’t expect that to matter.

2)  My DNS is optimized via http://code.google.com/p/namebench/ and hasn’t had any issues.